African banks spent at least $537 million on expansion deals in 2025, based on disclosed transactions, as the continent’s largest lenders turned to acquisitions to protect earnings, build digital capabilities, and secure new growth markets amid volatile domestic conditions, according to a finding from Finance in Africa.
The figure reflects only transactions with publicly disclosed values. Several major deals announced during the year carried no price tags, suggesting the true scale of investment is significantly higher and highlighting how consolidation and selective expansion have become central to banking strategy across Africa.
South African lenders dominated disclosed spending, supported by stronger balance sheets and more resilient earnings. In contrast, Nigerian and East African banks pressed ahead with regional expansion despite tighter margins and rising operating costs.
FirstRand Bank recorded the largest disclosed outlay among African banks in 2025, anchored by its $279 million investment in digital finance platform Optasia. The transaction, announced in October, saw the group acquire a 20 percent stake in the UAE-based firm for R4.7 billion, signalling a shift beyond traditional banking acquisitions toward data-driven lending and embedded finance models.
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The Optasia deal was complemented by portfolio acquisitions across the region. Through FNB Zambia, FirstRand agreed to acquire Standard Chartered Zambia’s Wealth and Retail Banking portfolio, subject to regulatory approvals. Earlier in the year, the bank also received clearance to take over the clients, assets, liabilities, and staff of HSBC’s South African unit, a deal first announced in 2024. Financial terms for both transactions were not disclosed, indicating that total expansion spending exceeded reported figures.
The acquisitions followed a resilient financial year in which FirstRand’s normalised earnings rose 10 percent to R41.8 billion, while return on equity reached 20.2 percent.
Access Holdings Plc ranked next in disclosed spending, completing three cross-border acquisitions valued at a combined $125 million as part of its aggressive regional expansion drive. The largest was the $109.6 million acquisition of National Bank of Kenya from KCB Group, disclosed in the lender’s half-year 2025 results.
Access Bank also completed the purchase of Standard Chartered’s Consumer, Private, and Business Banking operations in Tanzania, alongside its Gambian subsidiary, for a combined consideration of N23.3 billion under a framework agreement initiated in 2022. In July, the group concluded a fourth deal, acquiring a 76 percent stake in Mauritius-based AfrAsiaBank Limited through its UK subsidiary, though the transaction value was not disclosed.
The expansion push came against a weaker earnings backdrop. Profit after tax fell 23.2 percent in the first half to N281.3 billion, even as total assets rose to N42.4 trillion and deposits climbed to N22.9 trillion.
Nedbank’s expansion activity was defined by a single transaction. In August, the South African lender agreed to acquire fintech firm iKhokha in an all-cash deal valued at about R1.65 billion, strengthening its payments and working-capital offering for small and medium-sized enterprises. For the six months to June, headline earnings rose 6 percent to R8.4 billion, although profit after tax declined 6 percent to R8.1 billion due to higher costs.
Capitec also pursued a fintech-led strategy, agreeing in December to acquire Walletdoc Holdings for up to R400 million. The deal followed strong interim results, with headline earnings rising to R8 billion for the six months ended August.
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KCB Group recorded the smallest disclosed deal value, announcing a 75 percent acquisition of payments startup Riverbank Solutions for an estimated $15.4 million. The bank later acquired a minority stake in Pesapal, though terms were not disclosed.
Beyond priced deals, Absa agreed to acquire Standard Chartered Bank Uganda’s Wealth and Retail Banking portfolio. At the same time, Ethiopia emerged as a key frontier market as several regional banks signalled entry plans.
Measured by disclosed values alone, African banks committed at least $537 million to expansion in 2025, reinforcing expectations of deeper consolidation as lenders reposition for slower growth and tougher operating conditions.
“Analysts expect the recapitalisation push across the region to result in fewer but better-capitalised banks, with consolidation among weaker players strengthening liquidity and resilience over time,” said Finance in Africa.